Financial implications of the Bill
Zero-rate secondary Class 1 contributions for freeport employees
83 This measure is expected to decrease receipts. The final costing will be subject to scrutiny by the Office for Budget Responsibility and will be set out at a future fiscal event.
84 The measure is not expected to have any significant macroeconomic impacts. This measure is expected to have a positive impact on employees who work in or live near a Freeport Tax Site as it makes them more attractive to employers.
85 This measure will require changes to HMRC Information Technology systems to allow for a new NICs Category letter. Additional resource will also be required to support safe delivery. These costs are in the region of £2 million.
Zero-rate secondary Class 1 Contributions for Armed Forces veterans
86 The Exchequer impact of this measure is as follows:
Exchequer impact (£m)
|
2020 to 2021 |
2021 to 2022 |
2022 to 2023 |
2023 to 2024 |
2024 to 2025 |
2025 to 2026 |
|
- |
-15 |
-20 |
-20 |
- |
- |
87 The figures in paragraph 87 are set out in Table 2.2 of Budget 2021. More detail can be found in the policy costings document published alongside Budget 2020.
88 This measure is not expected to have any significant macroeconomic impacts. The measure accounts for a behavioural response including take-up and employment impacts.
89 Changes will be required to HMRC’s Information Technology systems to support implementation of the veterans measure. Early high-level estimates suggest costs in the region of £1.5 million and these will be refined as delivery progresses.
Exemption from Class 4 and Class 2 NICs for COVID-19 Test and Trace Support Payments
90 This measure is not expected to have an Exchequer impact.
91 This measure is not expected to have any significant economic impacts.
92 This measure is expected to have a negligible impact on HMRC operations.
Disclosure of NICs avoidance arrangements
93 This measure is not expected to have an Exchequer impact. It supports the Exchequer in its commitment to protect revenue.
94 These changes are not expected to have an operational impact on HMRC. The potential impact on HM Courts and Tribunal Service is being assessed by HMRC.